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Shares of Ford Motor Co. had their sharpest rise Thursday in nine years after the reputable automaker reported third-quarter earnings above Wall Street's expectations.
Ford
F + 9.90%
equities rose 9.9%, their best year-on-year percentage increase since the end of April 2009, to $ 8.99, their strongest closing since October 8th.
Ford announced Wednesday it has earned $ 991 million, or 25 cents a share, against $ 1.57 billion, or 39 cents a share, over the same period last year. Adjusted for non-recurring items, Ford earned $ 1.17 billion, or 29 cents a share, up from 44 cents a share a year ago.
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Revenue was up 3% to $ 37.6 billion from $ 36.4 billion in the third quarter of 2017. Analysts surveyed by FactSet were expecting adjusted earnings of 28 cents a share on a quarterly basis. business figure of $ 36.98 billion.
North American Profit Improvement, Driven by Better Product Mix and "Healthy" Profits from Ford's Credit Unit, Held Profit Breakdown Despite "Global Headwinds", Analysts said Thursday from Goldman Sachs.
"However, with negative prices in North America and poorer performance in Europe, as well as persistent problems in South America, we continue to see a downward trend in earnings," they said.
Goldman analysts kept their rating on Ford equities neutral, with a price target of $ 9, implying a 1.5% price increase.
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Third quarter results "will likely help to dampen the negative sentiment and downward expectations of the equity and credit markets at a time when the company is striving to build partnerships, finalize restructuring and reorganization. Explore other value-enhancing exercises, "analysts Morgan Stanley said in their note.
But the results have not been "the big inflection" for the stock, they said. Ford's balance sheet "stands firm and no further evidence that could threaten the dividend has been presented," they said.
Ford has maintained its earnings guidance for 2018 between $ 1.30 and $ 1.50 per share, but the results "should be in the lower end of the range, and growth in 19 will be dampened by tariffs," he said. Garrett Nelson, Analyst. at CFRA.
"The details of the restructuring remain rare, but we appreciate Ford's emphasis on higher-margin pickup trucks and SUVs," Nelso said.
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Ford's business "remains very strong in key areas," Chief Executive Officer Jim Hackett said in a statement on Wednesday. "We continue to make progress in our efforts to rethink Ford so that it is better adjusted in terms of competition, disciplined capital allocation and flexible enough to win in a rapidly changing world."
Ford shares lost 28% this year, contrasting with the 0.9% and 0.7% gains for the S & P 500 index
SPX, + 1.86%
and the Dow Jones Industrial Average.
DJIA, + 1.63%
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